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"We want to make 4-7 deals this fiscal year," the company's CEO said
Realty firm Mahindra Lifespace Developers has raised four to seven land parcels in the current fiscal.
Arvind Subramanian, MD and CEO of Mahindra Lifespaces, part of Mahindra Group, said the company is in talks with its investment houses to set up a separate platform for the development of middle income housing projects.
He said the company is looking at the possibility of integrating the co-living segment into its future projects.
Reflecting the overall impact of the coronavirus pandemic on the housing market, Subramanian said demand would be postponed, but supply and project cash flows would be affected as construction activity was slowing due to labor shortages.
Housing prices in the affordable and mid-income segments are likely to fall, and there is no possibility of any reduction, but a correction of the rates of luxury residential properties can be seen.
"I'm very bullish on demand. Demand is more of a deferment than a contraction. With the launch of the lockdown, Rent-up demand comes into the market," said Subramanian, who will take over from July.
Already, he said, there is an increase in inquiries from potential customers - both pre-Covid-19 and looking for new ones.
In addition, there have been requests from existing customers to upgrade to larger apartments.
"Lockdown speeds up the whole process of searching and shortlisting properties. Generally, it takes 12-24 months for people to decide, but the lockdown has helped to crystallize their needs," says Subramanian.
However, overall sales have declined and the volume of inquiries has decreased, he said.
There will be a shake-out in the residential market, but not on the basis of a firm size, which will drive demand towards trusted builders who better manage their balance sheets, he said.
Speaking about the operations of Mahindra Lifespaces, Subramanian said the company has a balanced portfolio, with affordable and middle-income premium housing, as well as in large industrial cities.
The company is looking at both acquisition and joint development to strengthen its portfolio in three cities - Mumbai Metropolitan Region (MMR), Pune and Bengaluru.
The company has a strong balance sheet with cash reserves. Subramanian said that it also has a funding platform with HDFC Capital for affordable housing.
"Land acquisitions have become attractive. Landlords have now become more flexible. We are getting a lot of proposals. We want to make 4-7 deals this fiscal year," he said.
When asked about the investment details, Subramanian declined to give specific figures, but said "at least in our case, funding is not an obstacle."
“What we measure is - how much growth value or sales potential do we create through these acquisitions? By the end of this year, what we want to do is inventories worth about Rs 2 billion crore that we are earning in the form of land, ”he said.
Asked whether the company plans to buy the land parcels outright, Subramanian said, there are all kinds of discussions, from acquisition to joint development and management.
He said the listings would be available for the company to launch and sell in the next three years.
“Every year, if we can do that, then we create good pipeline projects,” he said.
He said the company is in talks with potential investors to fund the development of mid-income premium housing projects, but did not provide further details.
Mahindra Lifespace already has such a funding platform with HDFC Capital for affordable housing projects.
Subramanian said the company is ready to launch four-four projects in the new launches
He gave no guidance on sales bookings for the year 2020-21.
The company's sales bookings decreased from Rs 1,023 crore in 2018-19 to Rs 818 crore in the last fiscal.
The company had posted a net loss of Rs 193.41 crore in FY 2019-20 compared to a net profit of Rs 119.71 crore in the previous fiscal.
Total revenues fell marginally to Rs 645.92 crore from Rs 653.87 crore in 2018-19.
Mahindra Lifespaces has completed a total of 17 million square feet of projects so far and another 6 million square feet under construction.
It manages affordable housing projects under the Mahindra Happiest brand. Mahindra World City is developing integrated cities and clusters in Chennai and Jaipur.
Subramanian said that with so many companies looking to relocate the manufacturing base from China, there is a good opportunity for the country as well as industrial park developers.
"We want to make 4-7 deals this fiscal year," the company's CEO said
Realty firm Mahindra Lifespace Developers has raised four to seven land parcels in the current fiscal.
Arvind Subramanian, MD and CEO of Mahindra Lifespaces, part of Mahindra Group, said the company is in talks with its investment houses to set up a separate platform for the development of middle income housing projects.
He said the company is looking at the possibility of integrating the co-living segment into its future projects.
Reflecting the overall impact of the coronavirus pandemic on the housing market, Subramanian said demand would be postponed, but supply and project cash flows would be affected as construction activity was slowing due to labor shortages.
Housing prices in the affordable and mid-income segments are likely to fall, and there is no possibility of any reduction, but a correction of the rates of luxury residential properties can be seen.
"I'm very bullish on demand. Demand is more of a deferment than a contraction. With the launch of the lockdown, Rent-up demand comes into the market," said Subramanian, who will take over from July.
Already, he said, there is an increase in inquiries from potential customers - both pre-Covid-19 and looking for new ones.
In addition, there have been requests from existing customers to upgrade to larger apartments.
"Lockdown speeds up the whole process of searching and shortlisting properties. Generally, it takes 12-24 months for people to decide, but the lockdown has helped to crystallize their needs," says Subramanian.
However, overall sales have declined and the volume of inquiries has decreased, he said.
There will be a shake-out in the residential market, but not on the basis of a firm size, which will drive demand towards trusted builders who better manage their balance sheets, he said.
Speaking about the operations of Mahindra Lifespaces, Subramanian said the company has a balanced portfolio, with affordable and middle-income premium housing, as well as in large industrial cities.
The company is looking at both acquisition and joint development to strengthen its portfolio in three cities - Mumbai Metropolitan Region (MMR), Pune and Bengaluru.
The company has a strong balance sheet with cash reserves. Subramanian said that it also has a funding platform with HDFC Capital for affordable housing.
"Land acquisitions have become attractive. Landlords have now become more flexible. We are getting a lot of proposals. We want to make 4-7 deals this fiscal year," he said.
When asked about the investment details, Subramanian declined to give specific figures, but said "at least in our case, funding is not an obstacle."
“What we measure is - how much growth value or sales potential do we create through these acquisitions? By the end of this year, what we want to do is inventories worth about Rs 2 billion crore that we are earning in the form of land, ”he said.
Asked whether the company plans to buy the land parcels outright, Subramanian said, there are all kinds of discussions, from acquisition to joint development and management.
He said the listings would be available for the company to launch and sell in the next three years.
“Every year, if we can do that, then we create good pipeline projects,” he said.
He said the company is in talks with potential investors to fund the development of mid-income premium housing projects, but did not provide further details.
Mahindra Lifespace already has such a funding platform with HDFC Capital for affordable housing projects.
Subramanian said the company is ready to launch four-four projects in the new launches
He gave no guidance on sales bookings for the year 2020-21.
The company's sales bookings decreased from Rs 1,023 crore in 2018-19 to Rs 818 crore in the last fiscal.
The company had posted a net loss of Rs 193.41 crore in FY 2019-20 compared to a net profit of Rs 119.71 crore in the previous fiscal.
Total revenues fell marginally to Rs 645.92 crore from Rs 653.87 crore in 2018-19.
Mahindra Lifespaces has completed a total of 17 million square feet of projects so far and another 6 million square feet under construction.
It manages affordable housing projects under the Mahindra Happiest brand. Mahindra World City is developing integrated cities and clusters in Chennai and Jaipur.
Subramanian said that with so many companies looking to relocate the manufacturing base from China, there is a good opportunity for the country as well as industrial park developers.
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